Boeing’s third quarter was met with a significant negative market reaction, as management acknowledged ongoing operational challenges that impacted financial performance. CEO Robert Ortberg highlighted delays in stabilizing production rates for the 737 program, citing persistent difficulties in ramping up wing manufacturing and synchronizing fuselage supply from Wichita. While delivery volumes were the highest since 2018, Ortberg described progress as “not always going to be perfectly linear” and noted the company would need to remain disciplined to avoid further instability. Additionally, supply chain disruptions affected the 777 and 767 lines, though these costs were not material for the quarter. Management stressed the importance of focusing on safety, quality, and production consistency to achieve long-term improvement.
Is now the time to buy BA? Find out in our full research report (it’s free for active Edge members).
Boeing (BA) Q3 2026 highlights:
- Revenue $24.19 billion vs S&P analysts’ estimates of $24.21 billion (3.9% year-on-year growth, in line)
- Adjusted EPS -$0.34 vs S&P analysts’ expectations of -$0.20 (69.2% miss)
- Operating margin 1.5%, up from -20.5% in the same quarter last year
- Backlog $745.4 billion at quarter end, up 17.3% year on year
- Sales volumes were flat year on year (37.9% in the same quarter last year)
- Market capitalization $132.5 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from Boeing’s Q3 earnings call
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Myles Walton (Wolfe Research) asked about the limited free cash flow growth in 2027 despite operational positives. CFO Jesus Malave Jr. explained this reflected lower customer order deposits and increased capital expenditures, with legacy cash drags moderating over time.
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Seth Seifman (JPMorgan) questioned supply chain cost pressures and their impact on unit margins. Malave noted higher costs have been absorbed into guidance and that margin improvement is expected as higher price backlog is delivered and abnormal supply chain costs abate.
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Sheila Kahyaoglu (Jefferies) inquired about the impact of higher fuel prices on aircraft demand. CEO Ortberg said replacement demand remains strong due to fuel efficiency, but overall growth orders could soften if airlines reduce capacity; so far, no cancellations have occurred.
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David Strauss (Wells Fargo) sought clarification on the 777X delivery schedule and cash flow sensitivity. Malave stated that a minor delay could be absorbed within guidance, but acknowledged the timing is a significant risk factor for 2027 targets.
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Scott Mikus (Melius Research) probed the slow ramp to higher 737 and 787 production rates. Ortberg explained that process improvement initiatives are ongoing, and the outlook could improve if higher delivery rates are achieved sooner than planned.
Catalysts in upcoming quarters
In the coming quarters, the StockStory team will focus on (1) Boeing’s success in stabilizing 737 and 787 production rates, (2) meeting key certification milestones for the 777X program, and (3) execution and margin improvement in the defense business, especially as new contracts ramp. We will also watch for further evidence of supply chain normalization and progress toward stated free cash flow targets.
Boeing currently trades at $168.11, down from $188.32 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free).
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